IMPACT INVESTING AND SDG INVESTING: WHAT YOU NEED TO KNOW

sustainable TONTOTON

When you think of investing, you think about financial gain. After all, the entire point of making an investment is to see a return. But, did you know that an investment can be made with the goal of financial gain as well as positive impacts on society and the environment?

Investing with the intention of making a profit while encouraging positive impacts on the world is a relatively new idea but one that’s gaining traction. Businesses and investors are discovering that making ethical investment decisions isn’t just good for the environment but good for business as well. Those who are making such investments are yielding returns equal to or more than more traditional investments.

Because these types of investments are so new, it can be difficult to understand exactly what they are and the difference between them. We’re here to clear things up. Here’s a quick guide to SDG investments, impact investments, and how to get involved in this type of investing.

What are impact investments?

impact

Simply put, impact investments are those that are made with the intention of making a positive impact on society and the environment while making a financial profit. Often, impact investments look similar to traditional investments, but they are made with impact in mind.

An impact investment can be an investment in a company that is focused on positive impacts. For example, you may choose to invest in a telehealth company that provides online healthcare to people in rural areas. Or, one may invest in a project that will provide affordable housing in areas where it’s needed. 

Business owners can also make investments within their own companies to make them more sustainable. These types of investors will help encourage other impact investors to invest in your company. Many types of impact investments will also come back to you in the long run. For example, investing in energy-efficient light bulbs will save energy costs. Furthermore, it will protect your company from financial repercussions from legislative ideas like Extended Producer Responsibility.

What’s the connection between SDG investments and impact investments?

SDG Invest

SDG investments are a type of impact investing, but they keep the Sustainable Development Goals in mind.

The SDGs are 17 goals created by the United Nations that cover things like eradicating poverty, making health more accessible, and removing waste from the ocean. These goals are monitored through specific targets and indicators that governments and companies dedicated to these goals can achieve.

SDG investments are those made in companies or projects that follow the Sustainable Development Goals. The SDGs provide a framework for sustainability and social considerations for businesses to follow. Businesses that are dedicated to the SDGs show that they are fully committed to making a positive impact; they aren’t just making empty promises to their customers. Because of this, SDG investments may be stronger than other types of impact investments. While all impact investments are important, investing in companies that keep the SDGs as part of their business strategies is a way to ensure that your investment is truly impactful in a positive way.

How can you make an SDG investment?

SDG invest

Like impact investments, SDG investments can look a few different ways.

The most straightforward type of SDG investment is simply to invest in a company that follows the SDGs. These investments are nearly exactly the same as traditional investments, but the SDGs are as much of a consideration as the potential financial yield.

Some examples of SDG investments can be:

  • Investing in a company that can prove that they carefully vet all of their supply chains to ensure that workers are treated fairly and compensated competitively.
  • Investing in a business that is committed to eliminating unnecessary plastic packaging.
  • Investing in projects that are dedicated to providing relief to refugees.
  • Investing in projects dedicated to improving infrastructure and making housing available to everyone.

Why is investing in the SDGs important?

SDG investment

Besides the potential for financial gain, investing in the SDGs and companies that support the SDGs has great global importance for a number of reasons.

As mentioned previously, the SDGs provide a framework for ethical and sustainable business practices, and they are quickly becoming the standard when it comes to sustainability regulations. Businesses that are committed to the SDGs are not only devoted to ethical business practices, but they understand the importance of making sustainable choices when it comes to future success.

Enterprises that are being built to support the SDGs also need more funding than ever before in order to survive. The SDGs weren’t just created as an ethical guideline. They were implemented because the goals need to be achieved if we are to see prosperity in the future. Many predictions show that if we continue on our current trajectory, poverty will grow and our access to raw materials will diminish. To avoid this, achieving the SDGs is necessary. Investing in the SDGs betters our chances of achieving the SDGs and seeing a brighter future for all. 



Support the SDGs by partnering with TONTOTON

TONTOTON SDG impact

Supporting the SDGs isn’t just a good business decision but essential to the global community. Your company should begin implementing SDG strategies both within your business models and when making investment decisions. Partnering with TONTOTON allows you to make that first step toward helping to achieve the SDGs.

TONTOTON aligns with a number of SDGs: no poverty, sustainable communities, responsible consumption and production, and life below water. We are a certified plastic credit system that helps companies take responsibility for the plastic waste that they produce. When your company partners with TONTOTON, it will decide how much plastic waste it wants to take responsibility for and will purchase plastic credits equal to that amount. 

Your plastic credit funding will go towards projects that remove plastic waste from vulnerable communities. We employ members of the communities in which we work, providing competitive wages to those who will remove plastic waste from the environment. We also provide training and personal protective equipment, ensuring that our employees enjoy a safe working environment. 

We also focus on a type of plastic waste that was previously ignored: low-value, post-consumer plastic. Much of this plastic waste has leaked into households or is headed to the ocean where it will kill marine life, much of which these local communities depend upon for food and income. Through our work, local community members don’t just enjoy new employment opportunities but also a healthier environment.

Once the plastic waste is collected, we take it to cement factories to be converted into raw materials and energy through co-processing. This results in zero waste.

Furthermore, we are always coming up with new ways to help those in the communities in which we work and further eliminate plastic waste. We are working to remove plastic waste that has found itself in shallow water before it’s fully lost to the sea, and we have recently expanded our efforts into Cambodia, aiding vulnerable communities in two different countries.

Making SDG investments, like purchasing plastic credits through TONTOTON isn’t just something that will reap financial benefits in the future, it’s something that’s critical to our world’s continued success. Both socially and environmentally, our world needs help. Investing in companies and projects that align with the Sustainable Development Goals will help us all see a brighter future.